Benefits Of ‘PF Account’
EPF is also known as PF which is a government-established savings scheme for organized sector employees. Only employees of companies registered under the EPF Act can invest in EPF or PF.
Both the employer and the employee are required to contribute 12 percent of the basic salary and dearness allowance of the employee every month to the EPF account. Know five things related to EPFO every account holder should know.
Benefits of PF account:
EPF accounts provide excellent returns on deposits. Employees who have an account with the Employees Provident Fund Organization (EPFO) are provided this facility under the Employees Provident Fund Act, 1956. The rate of interest on EPF varies every year. It is now 8.5 percent.
This savings scheme comes under the purview of tax exemption under Section 80C of the Income Tax Act.
The government has provided partial evacuation facilities to help those affected by the Corona epidemic and unemployed during this period. This process is very easy and can be done online.
It offers a lifetime pension scheme under the Pension Scheme 1995 (EPS).
If a member of the EPFO is depositing contributions regularly, then in the event of his death, his family member can avail the Insurance Scheme 1976 (EDLI). Under this scheme, the member gets 20 times his last monthly salary. This amount can be up to a maximum of 6 lakh rupees. #KhabarLive #hydnews